As the map illustrates, climate change has largely been driven by the developed world, driving the important discussions at the Summit on Loss and Damage funding. These commitments, if met, drive significant opportunity in emerging economies for sustainable development and climate technologies. In addition, the high energy intensity of the North American (especially high in Canada’s prairie provinces) economy present significant opportunities for decarbonization investment as well. That is, focused green investments in places that are the dirtiest have the highest impact (and opportunity for support such as carbon credits).
The four goals for COP28 recognize the broad and holistic approach required to reach net-zero. In addition to the ‘traditional focus’ of energy transition, the increased focus on food and agriculture (which was not a focus of any COP until last year) highlights its importance in the journey to a sustainable future. In addition, the centrality of climate finance should present interesting opportunities for developing new mechanisms for blended finance, and innovative capital stacks to de-risk breakthrough technologies. Finally, the important focus on inclusion will hopefully drive important and complex conversations at the Summit, including engaging youth in the face of climate anxiety and working with Indigenous communities.
